Alibaba, EV Stocks Open Lackluster As Hang Seng Loses Sheen Amid Disappointing China Economic Data

Hong Kong’s benchmark Hang Seng index traded in the red Monday morning, falling 0.6% after China's industrial production and retail sales data disappointed investors.

Industrial production grew by 3.8%, slightly lower than the 3.9% figure in June. Retail sales rose 2.7% in July compared with the same period in 2021, below the 5% growth forecast, reported CNBC.

China’s central bank has also unexpectedly slashed a key policy interest rate for the first time since January, reported Bloomberg. The People’s Bank of China reduced the rate on its one-year policy loans by 10 basis points to 2.75% on Monday.

Tesla Inc (NASDAQ: TSLA)-rival Xpeng Motors' shares fell over 2% in morning trade.

Macro News: The People’s Liberation Army said it has widened its air controls into previously unreachable areas prior to the Taiwan crisis, the South China Morning Post reported citing PLA Daily. The air force’s most advanced J-20 fighter aircraft has been repeatedly scrambled to check for foreign aircraft entry into the East China Sea Air Defence Identification Zone, it said.

Also Read: Elon Musk Announces Over 3 Million Tesla Cars Produced, Congratulates Giga Shanghai

New bank lending in China has plunged more than expected in July, to 679 billion yuan, while broad credit growth has slowed, reported Reuters. Companies and consumers remain wary of taking on more debt in the wake of fresh COVID-19 cases, worries about jobs and a worsening property crisis.

Company News: Chinese EV maker Nio has narrowed the location shortlist for its mega NIO 2022 Day event to three cities, reported CnEVPost.

Li Auto is likely to launch a new SUV Li L8 soon, which could possibly replace its first model, Li ONE, reported CnEVPost.

Global Markets: U.S. indices gained on Friday with the Nasdaq, closing 2.09% higher. The Dow Jones Industrial Average rose 1.27% while the S&P 500 gained 1.73%.

Elsewhere in Asia, Australia’s ASX 200 gained 0.45% during Monday morning trade. Japan’s Nikkei 225 gained over 1% while China’s Shanghai Composite index was UP 0.24%. South Korean markets remained closed for a holiday.